The benchmark FTSE Bursa Malaysia KLCI rose 0.1 per cent to 1,662.92 points. The index is down 1.7 per cent for the year so far.
The ringgit declined 0.2 per cent to 4.135 against the US dollar, tracking weakness in its regional peers, according to a report in the Nikkei Asian Review (NAR).
Hawkish comments from Cleveland Federal Reserve President Loretta Mester and Richmond Fed President Jeffrey Lacker this week have boosted expectations of a US rate increase this year.
“While a hike is expected by the US this year, we maintain the view that December remains the most likely period,” NAR quoted Jingyi Pan, market strategist at IG as saying.
“The proximity of November’s meeting to the US elections will make the option an unappealing one for the Fed.”
US Presidential elections are scheduled to take place on Nov 8. The Fed is slated to meet on Nov 1 and 2 and on Dec 13 and 14.
According to the NAR report, in recent months, global risk appetite has hinged heavily on the continuation of accommodative monetary policies from major central banks.
On the KLCI, 13 of the 30 constituents ended higher Wednesday and seven closed unchanged, while overall declining issues outnumbered advancing ones 477 to 288.
Foreign investors bought RM143 million in Malaysian shares on Tuesday, according to Kenanga Research. For the year, foreign inflows now stand at almost RM2.5 billion.
Sime Darby advanced 2.6 per cent to RM7.81, leading gains on the KLCI.
Earlier Wednesday, the company said its placement of 316.35 million shares generated demand worth about 6.2 billion ringgit, driven by strong demand from institutional investors, NAR reported.
Hong Leong Financial Group, Malayan Banking, and CIMB Group Holdings rose 1.4 per cent to RM15.74, 0.9 per cent to RM7.65 and 0.6 per cent to RM4.79 respectively.
Genting Malaysia declined 1.5 per cent to RM4.50.